631 03 None Notes Erp Unit i 2 Marks

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BA7301 ENTERPRISE RESOURCE PLANNING

Department of MBA II !EAR " III SEM

# MAR$S % &UESTIONS ' ANS(ERS

Prepare) *+ R,Sat-+a. AP " IT

UNIT I INTRODUCTION

1. Defne ERP.

Enterprise Resource Planning (ERP) covers the techniques and concepts

employed for the integrated management of businesses as a whole, from the

viewpoint of the eective of management resources, to improve the eciency of an

enterprise

2. What is an Enterprise?

!n enterprise is a group of people with a common goal, which has certain

resources at its disposal to achieve that goal "hen used generically, an enterprise

is de#ned as the aggregate of all functional elements participating in a business

process improvement action, regardless of the organi$ational structure housing

those functional elements %t is a complete business consisting of functions,

divisions or other components used to accomplish speci#c ob&ectives and de#ned

goals

3. What are the main misconceptions ao!t ERP?

'irst is that ERP is a computer system Even though computers and % are

integral parts of an ERP system, ERP is primarily an enterprisewide

system, which encompasses corporate mission, ob&ectives, attitudes,

beliefs, values, operating style and people who ma*e the organi$ation

+econd is ERP is for manufacturing organi$ations alone his assumption is

basically due to the way in which ERP was historically developed from the

methods of aterial Requirements Planning (RP) and anufacturingResource Planning (RP %%) which are relevant to manufacturing

organi$ations RP became the fundamental concept in -./0s !t this

"ana#ipath$ T!%si&s 'ain En(ineerin( Co%%e(e) Department o* In*ormationTechno%o($.

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stage 12 (1ill of materials) was the prevailing trend %t further got

unfolded as ERP %% and now it has resulted in ERP, which is the concept of

enterprisewide planning of resources and is not limited to any particular

segment of the industry

. What are ERP pac/a(es?

ERP pac*ages are integrated (covering all business functions) software

pac*ages that support the ERP concepts ERP software is designed to model and

automate many of the basic processes of a company, from #nance to the shop 3oor,

with the goal of integrating information across the company and eliminating

comple4, e4pensive lin*s between computer systems that were never meant to

each other

0. Who are the main p%a$ers in the ERP mar/et?

+!P !5, People+oft, 2racle, 1aan, 67 Edwards, 8!7, Ramco, %'+, 7ata"or*s

etc

. When #o the ERP s$stem&s set o* (eneric processes pro#!ce #ramatic

improements?

ERP software is a mirror image of the ma&or business processes of an

organi$ation, such as customer order ful#llment and manufacturing %ts success

depends upon reach 9 a circumscribed ERP system isn:t much better than the

legacy system it replaces ERP system:s set of generic processes produce the

dramatic improvements they are capable of, only when used to connect parts of an

organi$ation and integrate its various processes seamlessly

. What are the reasons *or the e4p%osie (ro5th o* the ERP mar/et?

hey enable improved business performance by achieving; cycletime

reduction, increased business agility, inventory reduction, order ful#llment

improvement etc

hey support business growth requirements

ERP systems provide 3e4ible, integrated, real time decision support

ERP pac*ages can now be aorded by even small and medium si$ed

businesses and oers increased functionality at a reasonable cost


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hey help companies in supporting new products and new customers by

meeting their global requirements, including multiple languages and

currencies

6. What are the #irect enefts - tan(i%e enefts o* ERP s$stems?

1usiness %ntegration

'le4ibility

1etter analysis and planning capabilities


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Participation and dedication of the system:s future users

1ac*ing, support and cooperation of the %+>% personnel

7evelopment of interfaces with current operational systems and with

those under development Eort of consultants, who have respect for the company:s *nowhow and

wor* culture

+pirit and collaboration on the part of all

13. ;o5 #o conentiona% app%ication pac/a(es an# ERP pac/a(es #i


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1PR or 1usiness Process Reengineering is the fundamental rethin*ing and

radical redesign of business processes to achieve dramatic improvements in critical,

contemporary measures of performance such as cost, quality, service and speed

1. What is =I+?

%+ or anagement %nformation +ystem is a computer based system that

optimi$es the collection, collation, transfer and presentation of information

throughout an organi$ation through an integrated structure of databases and

information 3ow

1. What are the main characteristics o* =I+?

%+ supports the data processing functions of transaction handling and

record *eeping

%+ uses an integrated database and supports a variety of functional

areas

%+ provides operational, tactical an d strategic levels of the organi$ation

with timely information

%+ is 3e4ible and can be adapted to changing needs of an organi$ation

16. What is D++?

7++ or 7ecision +upport +ystem is information and planning system that

provides the ability to interrogate computers on an adhoc basis, analy$e

information and predict the impact of decisions before they are made ! 7++ is acohesive and integrated set programs that share data and information

17. What is EI+?

E%+ or E4ecutive %nformation +ystem is an information system that

consolidates and summaries the ongoing transactions within an organi$ation %t

should provide management with all the information it requires, at all times, from

internal as well as e4ternal sources ! successful E%+ is easy to use, 3e4ible and

customi$able

29. What is ERP?Enterprise Resource Planning (ERP) covers the techniques and concepts employed

for the integrated management of businesses as a whole, from the viewpoint of the


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eective use of management resources, to improve the eciency of an enterprise

%deally the data for various business functions are integrated

21. Write the a#anta(es o* ERP.

%nstalling an ERP system has many advantages 9 both direct and indirect he

direct advantages include improved eciency, information integration for better

decision ma*ing, faster response time to customer queries, etc he indirect

bene#ts include better corporate image, improved customer goodwill, customer

satisfaction, and so on

22. Disc!ss ea%!ation o* ERP.

!s the department become large, they became closed ? water tight Each had their

own set of procedures ? hierarchy, each ? every department maintain information

separately which causes waste of resources

@ence ERP is implemented to integrate all the department together and

limit the waste of resources

23. ;o5 !siness inte(ration achiee# $ ERP s$stem?

ERP pac*ages are considered to be integrated, is the automatic data

updation (automatic data e4change among applications) that is possible among the

related business components

2. Wh$ are ERP s$stems sai# to e 8e4i%e?

7ierent languages, currencies, accounting standards and so on can be covered in

one system, and functions that comprehensively manage multiple locations of a

company can be pac*aged and implemented automatically

20. Wh$ #o man$ ERP Imp%ementation *ai%s?

any a company fails in this because of a wrong product, incompetent and

hapha$ard implementation and inecient or ineective usage

2. What are the reasons *or the (ro5th o* the ERP mar/et?

o enable, improved business performance

o support business growth requirements

o provide 3e4ible, integrated, realtime decision support

o eliminate limitation in legacy systems


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o ta*e advantage of the untapped mid 9 mar*et (medium si$e

organi$ations)

2. ;o5 #o conentiona% app%ication pac/a(es an# ERP pac/a(es #iation&s s!ccess?


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ERP system that treats the organi$ation as a single entity and caters to

the information needs of the whole organi$ation %f this is possible, and if the

information that is generated is accurate, timely and relevant, then these systems

will go a long way in helping the organi$ation in reali$ing its goals

31. What is !siness mo#e%in(?

%n business modeling, we model the business as an integrated system,

ta*ing the processes managing its facilities and materials as resources %nformation

is a very important resource and is very critical in managing all the other resources

hus, the business model is a representation of the actual business 9 what

are the various business functions of the organi$ation, how are they related, what

are their interdependencies, and so on he business model is usually represented

in the graphical form using 3ow charts and 3ow diagrams 'rom the business

model, the data model of the system is created

32. What is inte(rate# #ata mo#e%?

%t should clearly depict the organi$ationB it should re3ect the daytoday

transactions and it should be updated continuously !t any given time, the

database should give a snapshot of the organi$ation at that point in time +o if an

order is entered, the sale is done and the goods are dispatched, then the database

should re3ect those changes he inventory should be reduced and the account

receivables should be increased !ll these things have to happen instantaneously

and automatically hat is the challenge and that is the advantage of the integrated

database and the integrated data model

33. ;o5 to oercome the %imitations o* ERP?

+ome of these technologies are;

1usiness Process Reengineering (1PR)

anagement %nformation +ystem (%+)

7ecision +upport +ystems (7++)

E4ecutive %nformation +ystems (E%+)

7ata "arehousing

7ata ining


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2nline !nalytical Processing (2C!P)

+upply =hain anagement

=ustomer Relationship anagement (=R)

3. What is #ata 5areho!sin(?he primary concept of data warehousing is that the data stored for

business analysis can be accessed most eectively by separating it from the data in

operational systems he most important reason for separating data for business

analysis, from the operational data, has always been the potential performance

degradation on the operational system that can result from the analysis processes

30. What is Data minin(?

7ata mining is the process of identifying valid, novel, potentially useful

and ultimately comprehensible information from databases that is used to ma*ecrucial business decisions

3. What #o $o! mean $ O,P?

2C!P can be de#ned in #ve words 9 'ast !nalysis of +hared

ultidimensional %nformation

'!+ means that the system is targeted to deliver most responses to

users within about #ve seconds, with the simplest analysis ta*ing no more than one

second and very few ta*ing more than D0 seconds !!CF+%+ means that the

system can cope with any business logic and statistical analysis that is relevant forthe application and the user, and *eep it easy enough for the target user +@!RE7

means that the system implements all the security requirements for con#dentiality

(possibly down to cell level) and, if multiple write access is needed, concurrent

update loc*ing at an appropriate level


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materials into intermediate and #nished products, and the distribution of these

#nished products to customers +upply chains e4ist in both service and

manufacturing organi$ations, although the comple4ity of the chain may vary greatly

from industry to industry and #rm to #rm

36. What is the !se o* common #ataase?

he common database can allow every department of a business to store

and retrieve information real time he information should be reliable, accessible

and easily shared

37. ist the Reasons *or the (ro5th o* the ERP =ar/et

o improve business performance

o support business growth requirements

o eliminate limitations in legacy system


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631 03 None Notes Erp Unit i 2 Marks

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